The runtime system has built-in support for concurrency, distribution and fault tolerance. Because of the design goals for Erlang and it's runtime, you get services that can all run on one system or be distributed across a network, but the code that you actually write is relatively simple; the entire distributed system acts as a fault-tolerant VM that has functional guarantees.
If your startup node fails, then other nodes are elected. If a node crashes while in the middle of a method, another node will execute the method instead.
The runtime itself has some analogies to functional coding styles. It runs on a register machine rather than a stack machine. The call and return sequence is replaced by direct jumps to the implementation of the next instruction.